Subject: Restoration of 1/3rd commuted portion of pension in respect of Government servants who had drawn lumpsum payment on absorption in Central Public Sector Undertakings/Central Autonomous Bodies – Stepping up of notional full pension w.e.f. 1.01.2006 for the purpose of Dearness relief and additional pension for old pensioners.

Orders for revision of 1/3rd restored pension of absorbees, who had drawn lumpsum payment on absorption, were issued vide this Department OM. of even number dated 15.9.2008 as amended/ modified vide OM No. 4/30/2010-P&PW(D) dated 11.07.2013. As per these memorandums, the full pension of the absorbees was notionally revised w.e.f. 1.1.2006 in accordance with the instructions contained in this Department O.M. No.38/37/08-P&PW(A) dated 1.9.2008. The payment of DR and additional pension to old pensioners is regulated on the basis of the notional full pension.

2. Instructions were issued vide this Department’s OM No.38/37/08-P&PW(A) dated 28.1.2013 for stepping up of the pension of pre-2006 pensioners w.e.f. 24.9.2012. Accordingly, the notional full pension of the absorbee pensioners was also stepped up w.e.f 24.09.2012 in accordance with the instructions contained in the aforesaid OM dated 28.1.2013 vide this Department’s OM of even number dated 03.04.2013.

3. Instructions were issued vide this Department’s OM No 38/37/08-P&PW(A) dated 30.07.2015 for revision of pension/ family pension of all pre-2006 pensioners/ family pensioners in accordance with this Department’s OM dated 28.01.2013 with effect from 1.01.2006 instead of 24.09.2012. Accordingly, the notional full pension of absorbee pensioners was also revised in accordance with the instructions contained in aforesaid OM dated 30.07.2015 w.e.f. 1.01.2006 instead of 24.09.2012 for purpose of payment of dearness relief and additional pension for old pensioners vide this Department’s OM of even no. Dated 17.02.2016.

4. Instructions have now been issued vide this Department’s OM No. 38/37/08 P&PW(A) dated 6.04.2016 that the revised consolidated pension of pre-2006 pensioners shall not be lower than 50% of the minimum of the pay in the Pay Band and the grade pay (wherever applicable) corresponding to the pre-revised pay scale as per fitment table without pro-rata reduction of pension even if they had qualifying service of less than 33 years at the time of retirement. Accordingly, the notional full pension of absorbee pensioners would also be revised in accordance with the instructions contained in aforesaid OM dated 6.04.2016 w.e.f. 1.01.2006 and dearness relief and additional pension for old pensioners would be admissible on such notional revised full pension. There will, however, be no change in the actual 1/3rd restored pension determined in accordance with the OM dated 15.09.2008 read with OM dated 11.07.2013.

5. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their l.D. No. 1(5)/E.V/2012 dated 4.07.2016.